A new amendment to the NACHA Operating Rules provides a means of identifying business checks that are ineligible for check conversion, and also allows businesses to take steps to prevent their checks from being converted.

As of September 15, 2006, checks with an Auxiliary On-Us field in the MICR line are ineligible for electronic conversion. Businesses that want to opt out of all forms of check conversion can use checks that include the Auxiliary On-Us field.

Learn more about identifying business checks ineligible for conversion »

The Rule Change in Brief

The September 2006 NACHA Rule change limits the conversion of consumer or business checks to items of $25,000 or less, and also:

• Assists businesses and financial institutions in identifying which checks are eligible for conversion under ARC and POP.
• Allows businesses to take steps to prevent their check from being converted at a point-of-purchase, at a lockbox, or at a dropbox.
• Adds a new Return Reason Code (R39) so financial institutions can return ineligible items that are converted under ARC and POP.